Can I Collect Workers’ Compensation and SSDI at the Same Time?

Yes, you can collect both workers’ compensation and Social Security Disability Insurance (SSDI) at the same time. However, there is a critical limitation known as the workers’ compensation offset, which can reduce the amount of SSDI you receive.

If you’ve been injured at work and are unable to return to employment, it’s common to qualify for both systems, but how they interact is extremely important.

How Workers’ Compensation and SSDI Work Together

Workers’ compensation benefits are paid under Massachusetts General Laws Chapter 152, while SSDI is a federal benefit administered by the Social Security Administration.

You can receive:

• Weekly workers’ compensation checks, and
• Monthly SSDI benefits

But there’s a cap on how much you can receive combined.

What Is the Workers’ Compensation Offset?

The offset rule limits the total amount you can receive from both benefits combined.

In general:

• Your combined benefits cannot exceed 80% of your Average Current Earnings (ACE)
• If they do, SSDI will be reduced (not your workers’ comp)

For example:

• If your pre-injury earnings support a cap of $1,000/week
• And you receive $800/week in workers’ comp
• Your SSDI benefit will be reduced to keep you at or below that 80% threshold

This is a highly technical calculation that the Social Security Administration performs, and it can significantly impact your total recovery.

Why This Matters in a Settlement

If you resolve your workers’ compensation case by way of a lump sum settlement, the way that settlement is structured can have a major impact on your SSDI benefits.

A properly drafted settlement can:

• Spread the settlement over your life expectancy
• Reduce or eliminate the SSDI offset
• Maximize your overall financial recovery

If not handled correctly, you could unintentionally trigger a large reduction in your SSDI benefits.

Key Takeaways

• Yes, you can receive both workers’ comp and SSDI at the same time
• However, your total combined benefits are capped at 80% of your pre-injury earnings
• Any excess typically results in a reduction of your SSDI benefits
• Proper planning, especially in the settlement phase, is critical to protect your money

Speak With a Massachusetts Workers’ Compensation Lawyer

At Chisholm Law LLC, we regularly advise clients on how workers’ compensation benefits interact with SSDI. If you are receiving or applying for SSDI while also pursuing a workers’ compensation claim, it is essential to understand how to structure your case to avoid unnecessary reductions.

Contact us today to make sure your benefits are fully protected and properly coordinated.